PPP Round 2

PPP FAQ

• What is the PPP?

  The Paycheck Protection Program (PPP) is a $953-billion business loan program established by the 2020 US Federal government Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help certain businesses, self-employed workers, sole proprietors, certain nonprofit organizations, and tribal businesses continue paying their workers.

  To put it a little more simply, the PPP is a government program designed to help small businesses by offering a 100% forgivable loan to help pay for qualified business expenses. Forgivable means you do not pay back the loan.

• Do I have to pay back the loan?

  No you do not have to pay back the loan after you ask for forgiveness and you receive the confirmation from the SBA.

• Is it easy to get forgiveness?

  If you are self-employed, there are 2 main rules you have to follow to get forgiveness.

  1. Pay yourself a weekly salary.
  2. Keep a record of paying yourself.

  If you can follow those rules, then you will get forgiveness.

  ---

  If you have employees, there are a few more rules to follow.

  • Employee and compensation levels are maintained
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60% of the proceeds are spent on payroll costs
• How do I pay myself a weekly salary?

  There are a couple of different ways to pay yourself and make it easy to have a record of paying yourself which you’ll need when you apply for forgiveness.

  The rules state you have to pay yourself over the course of 8 to 24 weeks. We recommend paying yourself over 10 weeks. Take the full loan amount and divide it by 10 to get your weekly salary.

  If you have a personal bank account and a business bank account then just transfer your weekly salary once a week for 8 weeks. You can use your bank statement to show the transfer.

  If you have a checkbook, you can write yourself a check once a week for 10 weeks and use the checks as proof that you paid yourself a weekly salary.

  You can withdraw your weekly salary once a week and save the transaction slip to use as proof that you paid yourself a weekly salary.

• When did the PPP program reopen?

  The Paycheck Protection Program was reopened on January 11, 2021.

• Wasn't the deadline March 31st for applying?

  The president signed the extension into law on March 23rd. The new deadline for applying is now May 31. You can read more about the extension here.

• How much can I get in the form of a forgivable loan?

  If you have never received a PPP before, you can get a total of 5 months of pay. If you have received a PPP before, you can get an additional 2.5 months of pay. For example, if you generally make around $800 per week then you can qualify for approximately $16,000 as a 100% forgivable loan.

• I already applied and received one the first time they were offered. Can I receive another forgivable PPP loan?

  Yes, apply below .

• I didn't apply during the first round of PPP loans. Am I able to apply now as a first-time applicant?

  Yes, apply below .

• Who qualifies for this forgivable loan?

  Self-employed individuals qualify for a forgivable PPP loan. Just enter your name as the business name.

  Self employed individuals including (but not limited to) the following:

  • Instacart shoppers
  • Doordash drivers
  • Grubhub drivers
  • Dumpling drivers
  • Uber Eats drivers
  • Lyft drivers
  • Uber drivers
  • Postmates drivers
  • Shipt
  • DJs
  • Photographers
  • Makeup Artists
  • Hairdressers
  • Barbers
  • Landscapers
  • ANY Gig Worker
  • Anyone who can get a 1099 from an employer

  Small businesses with less than 300 employees also qualify.

  • Restaurants
  • Fitness Centers
  • Convenience Stores
• Is there a phone number I can call?

  Yes absolutely there is. Please call (860) 834-1651 and mention you want a PPP.

• Is there a number I can text?

  Yes we do texts too! Please text (860) 635-1060 and mention you want more info on the PPP.

• Is there a fee for applying?

  There is an accounting fee for preparing, and following up on your loan. We also prepare any other tax documents you might need such as a draft Schedule C. The fee is just 10% of your qualified PPP amount. Remember that you don’t have to pay back the loan once you receive forgiveness and included in the 10% fee is assisting you getting your loan forgiven afterwards.

  If your PPP qualified amount is less than $4,500 then the accounting fee is 14% or $349 (whichever is larger).

• Can I prepare my own PPP application for free?

  Yes you can go directly to a participating bank and apply there. We haven’t seen any banks that are offering any help in person or over the phone for the PPP application. They’ve all directed folks to their website to a PPP portal page where it falls on the applicant to be able to understand what documents and information is required. Not surprisingly, the number of applications denied due to incorrect/missing info has been enormous. We have heard from some of the banks that most of the denials are people who actually qualify but they had uploaded the wrong info and didn’t follow the instructions. Accounting firms can’t charge just to submit an application for someone per the SBA guidance, but based on the required documents and navigating various tax forms, there is a fair amount of accounting work required as it relates to tax filing and calculating average payroll.

• Is there are government website where I can read more information about this forgivable loan?

  Yes there is directly on the SBA website.

  First draw info SBA.gov/ppp-1

  Second draw info SBA.gov/ppp-2